Jerryrigeverything can afford his items due to tax write offs.

[Kaythree]

Comments On a TikTok vid of a jerryrigeverything steam deck durability test.
Theyre all replying to someone asking how he can afford those items to break, of course #1 answer: tax write off.
TikTok’s been rotting my brain so much more than usual

lately, but seeing people just yap about something they have no idea just ruins my day. So before yall say it, idc if you don’t use TikTok, never will touch it, never understood it, etc. 

I think Linus should keep being salty and telling about how this isn’t how it work. hell make a whole team in LTT to combat this stupidity /s

[WereCat]

Jerry rigged the system so he can actually do a tax write off on this. It's an exception in his case. He probably also colludes with Linus and destroys these devices in his pool.

[Kaythree]

Just now, WereCat said:

Jerry rigged the system so he can actually do a tax write off on this. It's an exception in his case. He probably also colludes with Linus and destroys these devices in his pool.

The elites can’t keep getting away with this 

[Kisai]

Linus already addressed this 

 

[Needfuldoer]

[ Moved to Off Topic ]

  

18 minutes ago, Kaythree said:

TikTok’s been rotting my brain so much more than usual

Gotta kick that habit before TikTok melts your brain into goop and it leaks out of your nose.

[ToboRobot]

Jerry has income from being a YouTube and selling knives.

This is what people seem to not understand. 

It's unfortunate that mathematics aren't taught to people sufficiently for them to understand taxation. 

[Kaythree]

3 hours ago, ToboRobot said:

Jerry has income from being a YouTube and selling knives.

This is what people seem to not understand. 

It's unfortunate that mathematics aren't taught to people sufficiently for them to understand taxation. 

Don’t get me started on the people that were confidently commenting Zack, not jerry, (although I’ll be honest not sure if it’s Zack or Zach haha) gets sent these products and/or paid to “durability test” them. 

[Kaythree]

3 hours ago, ToboRobot said:

Jerry has income from being a YouTube and selling knives.

This is what people seem to not understand. 

It's unfortunate that mathematics aren't taught to people sufficiently for them to understand taxation. 

It just boggles my mind that when someone questions how someone affords something they instantly think tax write off and not they have money from their very public and successful career 

[Kaythree]

3 hours ago, SansVarnic said:

The Canadian tax code and the US tax code are different. 

Apparently this needs to be pointed out.

 

And yes in the US if you pay for something specifically for work you can write it off but there is a minimum that must be met in order for that write off to actually affect your taxes. Each tax bracket has a different minimum. 

This is the most basic explanation. 

 

Btw Linus hits it right on. It's an adjustment not free money.

 

Besides who cares if someone writes off something on their taxes? It's legal, has been for a very long time. It's not free money, just an adjustment to how your taxes are figured.

If you don't understand how taxes work then your opinion is just that... an opinion. I suggest to anyone who want give an opinion might want read up and update your opinion so it has validity. 

 

And yeah if you use tiktok .. just stop, seek help.

yea my post was mainly just out of frustration of how people answered the question; how does he afford these products to essentially destroy? 
the most common answer was tax write off. 
which I’m sure might help Zach with costs a bit but ultimately everyone in the comments has no idea what a tax write off is and they think it’s free money, like what Linus has been ranting about. So I shared it here cause I just couldn’t believe that many people were so … well dumb. 

[ToboRobot]

13 minutes ago, Kaythree said:

It just boggles my mind that when someone questions how someone affords something they instantly think tax write off and not they have money from their very public and successful career 

Many adults do not understand tax brackets.

Part of me thinks governments aren't interested in teaching math well, because people would be unhappy if they understood the math behind government deficit spending. 

[BrandonTech.05]

I feel like people just need to stop talking about things they truly do not understand. 

That said the tax write off jokes are amazing. 

[ToboRobot]

11 minutes ago, BrandonTech.05 said:

I feel like people just need to stop talking about things they truly do not understand. 

 

Some people would have very little to talk about.

[voyager_]

Tik Tok, enough said...

[OhYou_]

there is nothing wrong with TikTok
Youtube is garbage and now there is finally competition and what?
You complain about it??

maybe re-evaluate what matters to you because youtube is getting worse and worse for content creators and there NEEDS to be alternatives right now or the whole thing falls apart.

[seanondemand]

ITT a lot of people who have never filed business taxes

 

Getting to “write things off” doesn’t mean you just get to take a $500 item, say it’s “for work”, and then get to not pay $500 in taxes - it’s much, much less than that. 
 

the reason jerryrigeverything breaks shit for TikTok/youtube is because for every $500 item he breaks, the platforms are probably paying him $2000 for the views. It’s an expense. 

[wanderingfool2]

9 hours ago, Kisai said:

Linus already addressed this 

 

I just watched that rant.

 

Linus is either disingenuous, or lacks basic knowledge of what people are referring to as a tax write-off.  Either way it sounded condescending when in reality his example like so many things with LMG lacking truth.

 

Tax write offs are a thing, and things that are ACTUALLY used by business owners [albeit often too far].  To put it bluntly, purchasing as a business means you expense it which lowers the profits the company makes [i.e. the business pays less tax], so if you use the 50% tax in the Linus example whatever you buy for the business it can save you the cost by 50% assuming you are making money.

 

People can and do use things like the "pool" to write off taxes, just like people use it to justify the car.  It's just like how last time Linus talked about taxes and how he claimed charging less taxes on businesses doesn't actually do anything...he is wrong in his fundamental thought on how taxes can get exploited.

 

So for anyone here who believes Linus on this one, here's an example of someone who pays taxes vs using a pool as a tax write-off.

 

Person A:

Owns a business with a taxable income of $100,000 per year.  The company pays out 50% in business taxes. [Net $50,000 value gain]

Person A also has a salary of $100,000 per year at their company [the company still has the $100,000 profit after salary expense].  The person pays out 50% in income tax.

So the net value of the business increases by $50,000, and the owner also has $50,000.  The total taxes paid out are $100,000.

Person A now wants to buy a $100,000 pool, now here they would pay GST on it of 5%.  So the person pays out $105,000 total from their own bank. [For the sake of this, lets say the pool adds $10,000 value to the home]

 

Simple and clean [oversimplification but generally how it works].

Notice how the businesses value increased by $50,000

The persons personal wealth (excluding business) has decreased though by [$50,000 - $105,000 + $10,000] = -$45,000.  Compared to not purchasing the pool it would be +$50,000

 

 

In total Person A's total capital ownership has increased only by $5,000 when you include the business's increased value.

 

Person B [exploiter, tax write-off]:

Same deal, it would have been $100,000 income, with a $100,000 salary.

Except this time, Person B purchases the pool for the purpose of "utilizing" it for the business [strictly speaking you would do a % in Linus' case as you can't claim it all as a business expense].  In this case though for simplicity and because some tax payers actually do this, label it as 100% purchased by the company.

 

Company B now has an expense of $105,000.  [So strictly speaking you have to amortize it over years that it's consumed...but I don't want to overly complicate things].  After the shoot, it gets now given to the "owner" for the home by the company.

 

So net, your businesses profit becomes $0 = [$100,000 - $105,000 + $5,000GST credit]

On the persons tax side of things

$100,000 salary  + $10,000 pool value = $110,000 in total income [Now I'm going to ignore that capital gains tax bc it's typically less and it complicates it more and doesn't matter].

 

So for taxes, the company spends $0 in taxes

Person B spends $55,000 in taxes.

 

Person B's net asset increase, 0 from business, but $55,000 in personal wealth/assets.

 

Comparison

Person B has now saved themselves $50,000 compared to Person A.

That Linus is what people are referring to when they are saying tax write-off.  Linus' example of splitting the money again and again shows the lack of basic level business

 

6 hours ago, SansVarnic said:

The Canadian tax code and the US tax code are different. 

Apparently this needs to be pointed out.

 

And yes in the US if you pay for something specifically for work you can write it off but there is a minimum that must be met in order for that write off to actually affect your taxes. Each tax bracket has a different minimum. 

This is the most basic explanation. 

 

Btw Linus hits it right on. It's an adjustment not free money.

 

Besides who cares if someone writes off something on their taxes? It's legal, has been for a very long time. It's not free money, just an adjustment to how your taxes are figured.

If you don't understand how taxes work then your opinion is just that... an opinion. I suggest to anyone who want give an opinion might want read up and update your opinion so it has validity. 

In regards to this though they are pretty similar.

 

It's not "free money", but no one who I've seen has said free money...they are saying tax write-off.  It's a way to potentially greatly reduce a person item cost [see my extreme example above].  If you assume a 50% tax rate on the profits and income tax then doing a tax write-off would save you roughly 50% on total cost.

 

To put it bluntly as well, JerryRigsEverything can destroy things BECAUSE it counts as a tax write off.

 

If a company gives him a product, he has to declare that as a profit to the company at the fair market value.  The tax write off since the product was destroyed would match that...so the companies net income would be 0.

 

If lets say he didn't destroy the product, he would have to include the value of the product towards his profits [and as some influencers learned that can add up quickly and lead to a massive tax bill].

 

As to the who cares if someone writes off something on their taxes...it's a whole "it depends".  For someone like JRE, I have no problem with him writing off the phones and such.

 

The problem is when people/companies start with the "grey" area of tax write-offs.  i.e. When it benefits the individual owner, as it allows them to essentially skirt around paying what truly is owed on it [and especially if they get the GST tax credit].  Like the example above, while it's a hypothetical there are people of Linus' wealth who ACTUALLY do what Person B in my example is doing.  There are people who do that for $100,000 cars...renovating their home because they are "working from home" etc.

 

In the most extreme cases as well, an owner will have a shell company that owns all the assets, and the person is essentially expensing everything towards the business [so their $100,000 company income per year gets set to 0 taxes paid, and the person doesn't collect a salary so they don't pay anything].  It's actually a really bizarre way of putting things, but you actually have people in BC here who technically are making millions a year but pay no taxes, have million dollar homes, fancy cars and are classified as living in poverty based on their income tax...the kicker as well, since they technically live in "poverty" they qualify for a bunch of government programs etc [despite realistically being wealthy and making millions].  If, not when, they do get caught the gov't can only go back like 7 years [unless they show intent], and often times they are wealthy enough to force a settlement where it's effectively just paying back what they would have owed during a short period of time.

 

  

2 hours ago, Kaythree said:

It just boggles my mind that when someone questions how someone affords something they instantly think tax write off and not they have money from their very public and successful career 

It's about someone who does have the means to pay for things, exploiting a tax system that lets then effectively knock off the price of the item by a significant margin if they current own a profitable business

[Kaythree]

3 hours ago, OhYou_ said:

there is nothing wrong with TikTok
Youtube is garbage and now there is finally competition and what?
You complain about it??

maybe re-evaluate what matters to you because youtube is getting worse and worse for content creators and there NEEDS to be alternatives right now or the whole thing falls apart.

There are people on their high horse- saying “I would never use TikTok, it’s garbage and spyware and for dumb people with no attention span” 

 

I am not one of those people, however recently I’ve noticed people on there comment more and more absurd, blatantly false and stupid things daily. That’s just my observation. 
that’s why I said I don’t want to hear from the stuck up peeps that act insulted if you ask if they use TikTok 

[atxcyclist]

8 hours ago, ToboRobot said:

Jerry has income from being a YouTube and selling knives.

This is what people seem to not understand. 

It's unfortunate that mathematics aren't taught to people sufficiently for them to understand taxation. 

It’s specifically that taxes are not taught at all, the level of math involved is quite basic compared to the algebra and geometry every student gets. Even in my college economics courses there was basically no mention of taxes. Having to get all the way into business school or taking accounting-specific courses before you learn about taxes is really ridiculous. 
 

I’m not disparaging the efforts to give people a well-rounded education, but instead of trying to get everyone to memorize atomic weights in the entire periodic table of elements, or the capitol city of each country on the planet, maybe learning about taxes that basically everyone will need to experience in their lives is a more worthwhile topic.

[Caroline]

[My Theory] All of the items are stolen by random lowlifes that have business with him, so they're technically free.

[wanderingfool2]

1 hour ago, atxcyclist said:

It’s specifically that taxes are not taught at all, the level of math involved is quite basic compared to the algebra and geometry every student gets. Even in my college economics courses there was basically no mention of taxes. Having to get all the way into business school or taking accounting-specific courses before you learn about taxes is really ridiculous. 

Honestly, it's because it has very little to do with maths at all.

 

Taxes specifically are a complex topic; so generally people only ever learn the basics.

 

As an example, tax year 2022 in Canada if you had your name on your parents bank to aid them [like so you can speak on their behalf] you didn't have to file a trust, in 2023 year you actually have to file a trust, even if you declare ownership of none of the money and would have to pay no taxes; you still have to fill out tax forms.

 

It gets more complicated here as well because it's business taxes and the tax laws regarding businesses can become a lot more complex, with a lot of nuances and loopholes.

 

10 hours ago, ToboRobot said:

Jerry has income from being a YouTube and selling knives.

This is what people seem to not understand. 

It's unfortunate that mathematics aren't taught to people sufficiently for them to understand taxation. 

See above, it has little to do with learning math.

 

Here is an example, that has happened to people (using beauty products as an example);

A product wants to sponsor an influencer, so they provide them with all the cosmetics and accessories, in exchange for all of that they were paid $200 for 1 Instagram post.

 

How much tax should they pay?

 

Now many people will have assumed only $200? In reality it was $100 in cosmetics, and $200 in accessories.  The actual amount of taxable income would now be $500.  So it really has little to do with proper math studies, it's about learning accounting and what does and doesn't count towards taxes.

 

In the case of JRE, if he receives a product for free, if lets say he keeps it instead of destroying it it counts towards taxable income...so while he might not have to pay for the upfront cost of the product he has to pay the effective taxrate of the item he is reviewing.

 

That's again where tax write-off occurs though, as if he destroys the product he should be able to also write it off as an expense.

[Kid.Lazer]

 

[ToboRobot]

42 minutes ago, wanderingfool2 said:

Honestly, it's because it has very little to do with maths at all.

 

Taxes specifically are a complex topic; so generally people only ever learn the basics.

 

As an example, tax year 2022 in Canada if you had your name on your parents bank to aid them [like so you can speak on their behalf] you didn't have to file a trust, in 2023 year you actually have to file a trust, even if you declare ownership of none of the money and would have to pay no taxes; you still have to fill out tax forms.

 

It gets more complicated here as well because it's business taxes and the tax laws regarding businesses can become a lot more complex, with a lot of nuances and loopholes.

 

See above, it has little to do with learning math.

 

Here is an example, that has happened to people (using beauty products as an example);

A product wants to sponsor an influencer, so they provide them with all the cosmetics and accessories, in exchange for all of that they were paid $200 for 1 Instagram post.

 

How much tax should they pay?

 

Now many people will have assumed only $200? In reality it was $100 in cosmetics, and $200 in accessories.  The actual amount of taxable income would now be $500.  So it really has little to do with proper math studies, it's about learning accounting and what does and doesn't count towards taxes.

 

In the case of JRE, if he receives a product for free, if lets say he keeps it instead of destroying it it counts towards taxable income...so while he might not have to pay for the upfront cost of the product he has to pay the effective taxrate of the item he is reviewing.

 

That's again where tax write-off occurs though, as if he destroys the product he should be able to also write it off as an expense.

People don't understand TAX BRACKETS, which is not complex. 

[wanderingfool2]

47 minutes ago, ToboRobot said:

People don't understand TAX BRACKETS, which is not complex. 

Which still has little to do with maths...which was effectively your statement that people didn't learn it in maths.  What this is is more of a financial management.

 

Do you understand where I am coming from though, because it doesn't matter that JRE or Linus makes money from other sources, things like "tax writeoff" is an actual thing that happens and is exploited by the rich often [who would often also fall into one of the higher tax brackets anyways].

 

Yes, writing things off can push you into a lower tax bracket; but being able to write off large expenses can have profound savings when again you are talking about someone who is wealthy.

 

So yea, tax brackets are a thing, but they matter less in the sense that A) they would likely be closer to one of the higher tax brackets B) it allows you to write off expenses that most people normally wouldn't.

 

e.g. Purchasing a $1000 phone, and you effectively reduce your end of year tax filing by at min $100 [which to an extent could be thought as the phone as being only a $900 expense then]..if you are in the highest tax bracket it would be like only having to pay $630.

 

The other example I used is also perfect in that if you have a large expense like a pool, if you use it as a "business expense" i.e. a tax write off, then yea it makes a huge difference if you are able to put it as a tax write off [because otherwise you would have to just pay it full stop with no eventual savings on tax].

 

So trying to specify "tax brackets" doesn't really make much sense in this kind of topic because it's talking about tax write-offs which yes your tax  bracket will play a role in the overall number...but it's foolish to act as though people saying a tax write-off implies they wouldn't understand such a thing.  [In the literal sense in some cases a tax write-off like in Linus' pool would be people essentially implying that Linus is writing off those kinds of things for a tax break]

[8tg]

All of the items are provided by me, personally. 

Thanks for your inquiry.

[LAwLz]

14 hours ago, SansVarnic said:

Besides who cares if someone writes off something on their taxes? It's legal, has been for a very long time. It's not free money, just an adjustment to how your taxes are figured.

I care, a lot. 

Just because something is legal doesn't mean it is right. Of course it heavily depends on why and how someone writes something off, but there have been examples of youtubers buying things, claiming they need it for a video, show it in a video once and then use it for private stuff afterward. That's a shitty move because they are deliberately trying to get around and pay as little tax as possible. That means they are essentially taking funds that could go to schools, hospitals and so on, and instead using it to but stuff for themselves.

 

The tax evasion stuff Apple and other companies do are also legal, but people are, in my opinion rightfully mad at them for that too. 

I understand that people try and minimize the amount of taxes they pay. Totally understand it. But I still think it's wrong to do it. Trying to avoid taxes is putting your own wants ahead of the things taxes pays for. 

 

In before arguments about how governments are using taxes inefficiently. That's not my point. My point is trying to minimize the taxes you pay is selfish and in general a bad thing to do for society as a whole. Especially if you are rich like a lot of these Youtubers. 

 

And just to be clear, I think people who just shout "tax write off" usually don't know what they are talking about. Internet comments tend to just hear a word and then repeat it over and over without understanding what it means.